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Grid Connected Rooftop Solar Photovoltaic Power Plants Policy for Jammu and Kashmir

Department of Science and Technology Policy issued vide Government Order No. 15-ST of 2017 dated 21.02.2017 Cabinet decision No. 18/02/2017 dated 13.02.2017

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Policy

for

Grid Connected Rooftop

Solar Photovoltaic Power Plants-2016

(Net Metering Based)

Department of Science and Technology

Government of Jammu and Kashmir



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Table of Contents

1. Background……………………………………………………………………………………………………….…3

2. Scope and Application……………………………………………………………………………………….…4

3. Objectives……………………………………………………….……………………………………………………5

4. Definitions…………………………………………………………………………………………………………...5

5. Acronyms…………………………………………………………………………………………………….……….6

6. Eligibility……………………………………………………………………………………………………….……..7

7. Capacity Targets for distribution License……………………………………………………………..7

8. Installed Capacity………………………………………………………………………………………………….7

9. Net Metering…………………………………………………………………………….……………………….…8

10. Connectivity and Production…………………………………………………………………………………8

11. Liability…………………………………………………………………………………………………………….....8

12. Technical and interconnection requirement

&

13. Operation and Maintenance ………………………………………………………………..……………….9

14. Banking Mechanism and Billing……………………………………………………………..……………..9

15. Subsidy…………………………………………………………………………………………………….….……….11

16. Incentives for the Industries Sector……………………………………………………………………..11

17. Solar Rooftop Systems for Government Institutions……………………………….……………11

18. Work Contract Tax…………………………………………………………………………………….………….12

19. Solar Renewable Purchase Obligations……………………………………………………….………..12

20. Applicability of other Charges………………………………………………………………………….....12

21. Eligibility to participate under Renewable Energy Certificate Mechanism…………….12

22. Application Fee……………………………………………………………………………………………………..13

23. Procedure……………………………………………………………………………………………………….….…13

24. Penalty……………………………………………………………………………………………………….………...13

25. Agreement………………………………………………………………………………………………….…….….13

26. Forms……………………………………………………………………………………………………….….……….13

27. Power to Interpret, Relax and Amend…………………………………………………………..………14



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1. BACKGROUND:

1.1 Solar energy offers clean, environment-friendly, abundant and

inexhaustible energy resource to mankind. The Ministry of New and

Renewable Energy (MNRE) has designated Jammu and Kashmir

Energy Development Agency (JAKEDA) as the nodal agency to

undertake the solar rooftop programme in the State for the domestic,

social, government, institutional and industrial & commercial sectors

through Grid interconnectivity and sale of power to the State Utility

(DISCOM) on Net Metering basis.

1.2 Under the Jawaharlal Nehru National Solar Mission, the Ministry of

New and Renewable Energy, Government of India, (MNRE) has fixed

a target of generating 1,00,000 MW of Grid Connected Solar Power

out of which 40,000 MW has been exclusively set for Grid Connected

Rooftop Solar Power Plants. An aggregate capacity of 450 MW of

Rooftop Solar Power has also been targeted to be generated by the

State of J&K by the year 2022.

1.3 The Government has already notified the J&K Solar Power Policy-

2013 which, inter alia, provides for encouraging solar power generation

to harness vast solar potential in the State and to promote large scale

Grid Connected Solar Power Plants to achieve the collective targets set

by the MNRE.

1.4 In pursuance of the issuance of final Regulations on Net metering for

Gird Interactive Rooftop Solar PV Systems by Jammu and Kashmir

State Electricity Regulatory Commission (JKSERC) and to achieve the

targets set by the Ministry (MNRE) the Government of J&K (GoJK)

notifies this Policy for Grid Interactive Roof-Top Solar Photo Voltaic

Power Plants based on Net-Metering.



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2. SCOPE AND APPLICATION:

2.1 This Policy shall remain applicable for a period of 10 years unless

repealed or substituted with a new Policy, whichever is earlier.

2.2 The policy shall be implemented in accordance with the provisions of

the JKSERC (Grid Interactive Rooftop Solar Photovoltaic Systems

based on Net Metering) Regulations, 2015, as amended from time to

time.

2.3 The policy shall take effect from the date of its notification in the

official Gazette.

3. OBJECTIVES:

The State Government introduces this Policy with the following

objectives:

3.1 To contribute to solar capacity addition and fulfillment of Solar targets

set by the Ministry.

3.2 To optimally utilize the available solar energy resource in the State.

3.3 To encourage development and promotion of environment friendly

solar energy generation contributing to sustainable development.

3.4 To enable stakeholders in reducing greenhouse gas emissions.

3.5 To attract private sector participation in solar energy sector.

3.6 To build favorable environment for setting up Grid Connected Rooftop

Solar Photovoltaic Power Plants.

3.7 To enhance skills and create employment opportunities.

3.8 To contribute to productive utilization of available rooftop spaces.

3.9 To spread environmental awareness amongst the general public of

J&K.



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4. DEFINITIONS:

Words and expressions used in this policy but not defined shall have the

same meaning as assigned to them respectively in JKSERC (Grid

Interactive Rooftop Solar Photovoltaic Systems based on Net Metering)

Regulations, 2015.

5. ACRONYMS:

Following expressions used in the Policy would have meanings

assigned to them as defined hereunder and as defined in the Solar

Policy-2013, as amended from time to time.

i. J&K : Jammu & Kashmir

ii. MNRE : Ministry of New and Renewable Energy

iii. JAKEDA : Jammu & Kashmir Energy Development

Agency

iv. DISCOM : Power Development Department, J&K

v. JKSERC : Jammu & Kashmir State Electricity Regulatory

Commission

vi. kWp : Kilo watt peak

vii. GoJK : Government of Jammu and Kashmir

viii. JNNSM : Jawaharlal Nehru National Solar Mission

ix. SPPs : Solar Power Plants

x. PV : Photovoltaic

xi. AC : Alternating Current

xii. O&M : Operation and Maintenance

xiii. MMC : Monthly Minimum Charges

xiv. RPO : Renewal Purchase Obligation



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6. ELIGIBILITY:

6.1 All the consumers of the State Distribution Licensee who intend to

generate solar energy and set up solar PV plants on available roof-tops

of Individual households, Industries, Government or Semi-Government

or Local Body offices, Commercial establishments, Institutions,

Residential complexes, either on their own (self-owned) or through the

third party owned Rooftop PV Net Metering Model, shall be eligible

with project capacity ranging from minimum 1kWp upto1000 kWp

(AC side) with or without battery back-up support. Consumers may

generate solar power for self-consumption and may feed excess power

into the grid.

6.2 An eligible consumer can select either his/her own or the third party

owned Rooftop PV system subject to guidelines issued by the

JKSERC. In the third party owned Rooftop PV Net Metering model,

the developers or intermediaries can lease out solar PV systems to the

interested rooftop owners. This can be a popular model for residential

home owner, where turnkey installers lease Rooftop Systems to

individual owners who, in turn, pay them a monthly lease rental. The

owner of the house shall provide the rooftop and engage a turnkey

installer to design and install the system. Alternatively, the installers

can also offer an integrated service of leasing, commissioning and

maintaining the systems to owners and guaranteeing standards of

performance. The electricity generated from such a system shall be

used to meet the rooftop owner’s internal electricity needs while the

excess generation shall be fed into the grid on net metering basis.

6.3 Notwithstanding the provisions of this policy, the State Government

Departments can undertake rooftop solar projects above 1000 kW Peak

(kWp) capacity through alternative mechanisms.



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7. CAPACITY TARGETS FOR DISTRIBUTION LICENSEE:

7.1 Maximum cumulative capacity to be installed under this Policy shall be

decided by the Government for two years and progress shall be

reviewed on yearly basis. The shortfall in any year shall be carried

forward to the next succeeding year provided that the cumulative

capacity to be allowed at a particular distribution transformer shall not

exceed the percentage of the rated capacity of the distribution

transformer as specified in the JKSERC Regulations from time to time;

on first-come-first serve basis. The applications not considered will

lapse and consumer will have to apply afresh after the end of two years

from the date of sanction for installation of rooftop solar power plants.

However, consumers who want to utilize the energy generated from the

Rooftop Solar Power Plants can use it for their captive use pending the

net metering apparatus/ infrastructure being put in place by the

Licensee DISCOM. After the installation of the net metering

apparatus/infrastructure energy export would be allowed.

7.2 The Distribution Licensee shall update distribution transformer level

capacity available for connecting rooftop solar systems under net

metering arrangement on 1stApril every year and shall provide the

information on its website as well as to the Commission and JAKEDA

by 30th of April.

8. INSTALLED CAPACITY:

The maximum capacity of the Roof Top Solar PV System, as

mentioned on AC side at the output of inverter based on rated inverter

capacity, shall not be more than the specified percentage of the

Sanctioned Load of the consumer as per the JKSERC Net-Metering

Regulations, provided that the minimum capacity shall not be less than

1 kWp and the maximum not more than 1000 kWp (for KVA

conversion to KW use a power factor of 0.9). Eligible Consumers shall



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assess their rooftop solar PV plant capacity based on the shadow less

clear roof top area or vacant spaces or Sanctioned Load or Actual

Annual Energy Consumption pattern and the capacity of Distribution

Transformer.

9. NET- METERING:

9.1 The distribution licensee shall allow non-discriminatory net-metering

arrangement with latest and approved equipment/apparatus on first-

come-first serve basis for both self-owned and third party owned

Rooftop PV Systems as long as the total capacity (in kWp) does not

exceed the target capacity determined.

9.2. The distribution licensee shall accept the Solar PV Power as per the

useful life of the SPV system or for a maximum period of 25 years

which is the expected life of the system at present.

10. CONNECTIVITY AND PROTECTION:

The interconnection of the Rooftop PV Solar Power Plant with the

network of the distribution licensee shall be made as per the technical

specifications and standards for connectivity provided in the JKSERC

Regulations for Net-Metering 2015, as amended from time to time.

11. LIABILITY:

The consumer/manufacturer/system integrator shall be solely

responsible for any accident to human being/animals, whatsoever,

(fatal/nonfatal) that may occur due to back feeding from the Solar Plant

when the Grid supply is off. The Distribution Licensee reserves the

right to disconnect the consumer’s installation at any time in the event

of such exigencies to prevent accident or damage to men and material.



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12. TECHNICAL AND INTERCONNECTION REQUIREMENTS:

&

13. OPERATION AND MAINTENANCE:

The GoJK would separately notify the technical & interconnection

requirements and O&M standards of the grid connected solar rooftop

power plants, as per the provisions of the JKSERC, as amended from

time to time. The said requirements and standards shall be available on

the website of the concerned Department for the benefit of the

stakeholders

14. BANKING MECHANISM AND BILLING:

14.1 On commissioning of the Solar Rooftop System and at the end of each

of the billing cycle/settlement period, Distribution Licensee shall take

energy meter readings for import or drawl and export or injection of

power and work out the net energy flow quantum from or to the

consumer. In case the net flow is towards the Utility Network i.e. the

consumer has injected/exported the net surplus energy to the

Distribution Licensee systems, such quantum will be treated as energy

banked by the consumer with Distribution Licensee in the current

billing cycle. In such scenario, the consumer will be issued Energy

Account Statement along with the bill for charges like MMC, service

charges etc., and banked energy will be carried forward for accounting

in the next billing cycle. If the net energy flow is from the Distribution

Licensee Network, then the consumer will be issued the Energy

Account Statement and Energy Bill for the net power drawn in the

billing cycle plus other charges.

14.2 The Energy Account Statement to be issued to consumer by

Distribution Licensee for each billing cycle shall show quantum of

export/ injected energy from Rooftop Solar PV System, Import/drawl

of energy from Distribution Licensee in the billing period, banked

energy of the previous billing cycle, net billed energy for payment by



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the consumer for that billing period or net banked energy carried

forward to the next billing period separately. The Energy Bill for

import will be prepared as per the retail supply tariff as approved by the

JKSERC for the category to which the consumer belongs. The energy

exported to Distribution Licensee from the Rooftop Solar PV system

shall be set-off against the energy imported from the Utility grid at the

JKSERC approved retail supply tariff applicable to the particular

consumer category.

14.3 At the end of the next and subsequent billing cycles / end of settlement

period, Distribution Licensee will take the energy meter reading and

work out the net flow taking into consideration the energy banked in

the previous billing cycle if any, along with the readings of import and

export of power for current billing cycle and work out the net energy

account bill, as the case may be. The Procedure will be repeated at the

end of every billing cycle. The settlement of net energy including any

banked energy shall be done at the end of each settlement period. At

the beginning of each settlement period, cumulative carried over

injected energy shall be reset to zero.

14.4 All Rules and regulations including tariff shall be governed by the

orders of JKSERC and terms and conditions prescribed in Application

&Agreement (A&A) form.

14.5 All the instructions, rules and regulations applicable to the consumers

of the Distribution Licensee for the applicable class/category including

but not limited to the Tariff rates, Payment Schedule, Late payment

surcharge, Connected load/Contract demand, Load Surcharge, Peak

load restriction, Advance Consumption Deposit etc., shall also be

applicable to the Roof Top Solar plant owner as a consumer of

Distribution Licensee. Electricity duty shall be levied as per

Government of J&K instructions amended from time to time.



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As long as the consumer having set-up the solar power plant consumes

power from Utility Grid and/or generated from solar plant or banked

solar energy up to or more than the Monthly Minimum Charges

(MMC) level in any billing period, MMC may not be leviable.

15. SUBSIDY:

15.1 The consumers interested in setting up of Solar Rooftop PV Project

either on their own or through the third party owned Rooftop PV Net

Metering Model shall approach Department of Science & Technology,

Government of J&K for grant of applicable subsidy from MNRE, GoI

and the State Government as per the prevailing instructions/Policy.

15.2 The Solar Power Plant will be eligible for the fiscal and other

incentives as per J&K Solar Power Policy- 2013, as amended from

time to time.

16. INCENTIVES FOR THE INDUSTRIES SECTOR:

The subsidy/incentives provided by the Central & State Government

for installation of Grid Connected Rooftop SPV systems, from time to

time shall be applicable to the new MSMEs/Start-Ups and SSI units in

the State to meet the energy requirements and augment the “Green

Initiatives” as envisaged under the Industrial Policy-2016, as amended

from time to time. However, validity of such incentives shall be subject

to the guidelines of the Industrial Policy.

17. SOLAR ROOFTOP SYSTEMS FOR GOVERNMENT

INSTITUTIONS:

All Government Departments/Institutions shall encourage installation

of Solar Rooftop Systems for their buildings/premises subject to

feasibility of the site.



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18. WORKS CONTRACT TAX:

The Works Contract Tax would be applicable on all contracts for

installation and commissioning of Solar Power Plants as specified by

the J&K Government, from time to time. The equipment for the solar

rooftop power plant as a unit would be exempted from the Works

Contract Tax. However, installation charges would be taxable.

19. SOLAR RENEWABLE PURCHASE OBLIGATION:

The quantum of electricity consumed by the eligible consumer, who is

not defined as obligated entity, from the rooftop solar system under net

metering arrangement shall qualify towards compliance of Renewable

Purchase Obligation (RPO) for the Distribution Licensee as per the

clause 14 of the Net Metering Regulations issued by JKSERC as

amended from time to time.

20. APPLICABILITY OF OTHER CHARGES:

The Rooftop Solar System under Net-metering arrangement, whether

self-owned or third party owned shall be exempted from banking and

wheeling charges, losses, cross subsidy and additional surcharge etc.

However the Monthly Minimum Charges (MMC) shall be applicable

on the total consumption of the consumer of each billing cycle and not

on the net consumption as per the provisions of JKSERC as amended

from time to time.

21. ELIGIBILITY TO PARTICIPATE UNDER RENEWABLE

ENERGY CERTIFICATE MECHANISM:

The issuance of renewable energy certificate shall be as per the

eligibility criteria specified under Central Electricity Regulatory



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Commission (Terms and Conditions for recognition and issuance of

Renewable Energy Certificate for Renewable Energy Generation)

Regulations, 2010 as amended from time to time.

22. APPLICATION FEE:

The applicant shall pay an application fee of Rs.100 per kWp subject to

a maximum of Rs.10000/- along with the application to the

Distribution Licensee.

23. PROCEDURE:

All the timelines that will govern the procedure for deploying the

Rooftop based Solar Power Plants in the premises of the bonafide

consumers, of all categories, shall be in accordance with the timelines

defined in the JKSERC Regulations for net metering, 2015 as amended

from time to time.

24. PENALTY:

In case of failure to meet the requirements for net metering system, the

solar power generator shall be liable to pay penalty as decided by the

JKSERC from time to time.

25. AGREEMENT:

For Grid Connectivity, the Eligible Consumers and the Distribution

Licensee shall enter into an agreement in the form and manner as

devised by the Government.

26. FORMS:

The Science and Technology Department shall, from time to time, notify

Application Forms for Grid Connected Solar Rooftop power plants and

other documents and conditions required for making such applications.



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27. POWER TO INTERPRET, RELAX AND AMEND:

The Government shall be the final authority to interpret any provision

or remove any difficulty in implementation of this policy, on the

recommendations of an Empowered Committee headed by the Chief

Secretary and comprising the following members, by general or special

order. The Government can relax any of the provisions of this Policy

and from time to time add, vary, alter, suspend, modify, amend or

repeal any provision of this Policy on the recommendations of the

Empowered Committee:

1. Chief Secretary, J&K Chairman

2. Administrative Secretary, Planning &

Development Department

Member

3. Administrative Secretary, Power

Development Department

Member

4. Administrative Secretary, Finance

Department

Member

5. Administrative Secretary, Industries and

Commerce Department

Member

6. Administrative Secretary, Housing and

Urban Development Department

Member

7. Administrative Secretary, Science &

Technology Department

Member Secretary

8. CEO, JAKEDA Member

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